Ninja Theory Developers Announce They Are Facing Redundancy, as the Studio Starts Laying Off Staff Following Widespread Xbox Cuts
Two failed sale deals left the Hellblade studio in UK consultation as Xbox’s restructuring pushes about 3,200 job cuts across its business.
- On Monday, October 5, 2026, Ninja Theory employees began reporting layoffs as the studio heads toward closure following the collapse of two sale agreements confirmed by Xbox COO Matt Booty.
- Xbox initiated a massive restructuring process eliminating about 3,200 positions across its business, leading the company to enter a consultation process with Ninja Theory after failing to secure a buyer.
- Multiple developers shared their experiences on LinkedIn, with Principle Programmer Stefano Prosperi noting after 13 years that "it's difficult to process the idea that this chapter may be coming to an end."
- While Double Fine successfully transitioned to independence, other Xbox-owned studios including Arkane Lyon, Undead Labs, and Compulsion Games face similar separation challenges amid the broader reorganization.
- The studio revealed a new game titled Senua at the Xbox Games Showcase 2026 four months ago to attract buyer interest, but closure plans now leave the title's development status uncertain.
11 Articles
11 Articles
Many members of the team leave the company as a result of the downsizing at Xbox.
In addition to classical filling words, the word "dismissals" is one of the words I wrote most often this year. At least that's how it seems to me. Today I can add a line on this list, because Ninja Theory lets some employees go. The studio is especially known for the two Hellblade parts, in which you travel as Senua through a mysterious and gloomy landscape in northern Europe and solve puzzles with voices in your head. Read more
The bad news keeps coming to the Xbox studios. Ninja Theory, Hellblade's team, has already started firing employees. This happens shortly after Microsoft warned that the studio would run the serious risk of shutting down for good. Read more
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